DID THE U.S. JUST FORCE IRAN TO STOP ACCEPTING DOLLARS FOR OIL?
January 24th, 2007Remember all the endless talk about the Iranian Oil Bourse and the shift to the eruo?
It appears that the U.S. just forced the issue and sent Iran down that road!
It’s hard to know if the White House has completely lost it, or if there is actually a forward looking plan. Because, right now, Bush seems determined to deliver a kill shot to the U.S. dollar.
Maybe that’s what they want: National Debt? Here you go. Here’s what we owe you. Print N number of dollars, hand them over. Thanks for doin’ bidness with us!
Meanwhile, it will cost you $500 to fill your moped.
Is it time for the Amero?
I don’t know. I’m at a loss on this one, guys. Help me out here…
Via: Iran Focus/AFP:
TEHRAN, Jan 23, 2007 (AFP) – Iran’s major banks said Tuesday they have halted the transfer of dollars abroad as a result of US financial sanctions and fears the money may be seized by the US authorities.
“On Monday, we received a directive asking us not to make any dollar transfers abroad,” an official in the Export Development Bank of Iran told AFP on condition of anonymity.
“Our customers can have accounts opened up in dollars and receive transfers in dollars. But we do not make any more transfers abroad in dollars,” he added.
The halt on transfers was confirmed by an official in one of the branches of Mellat Bank, one of the largest in the country.
Iran announced in December it would replace the dollar with the euro in foreign transactions and state-held foreign assets, in an apparent response to mounting US pressure on its banks.
The United States has blacklisted at least two Iranian banks amid a mounting standoff between the West and Tehran over its controversial nuclear programme that led to the imposition of UN sanctions last month.
It’s like someone hit fast forward. The administration is moving quicker than it’s constantly replenished internal opposition; like someone walking in a straight line. Perhaps something behind the scenes is already on fire. ?Ghawar really is crashing, and now; or some derivative fubar is failing to clear and accelerating. Yeah, beats me, but it’s creepy.
I am sticking with the name of the game being ‘Provoke Iran’. It is recycling the FDR provocations to get Japan to strike the first blow so we could join WWII.
Grab some Iranian diplomats, moving in some carriers, cut off their financial oxygen, get ’em to do something stupid and voila, WWIII.
Believe it or not, this will actually strengthen the USD.
First, massive WWIII war spending will cause fantastic economic stimulation to US economy. Watch Futurewars on Discovery channel to see what your tax dollars will be buying.
Then oil prices going up to $200 per barrel (of course in USD since WE will be selling Iranian oil with only a small nuclear radioactivity therein) will massively increase demand for US petro-dollars to fill up those European mopeds and US Expeditions with W stickers on ’em.
Massive printing of USD will be required to handle all this, creating awesome financial sector profits, and the US economy will have an incredible boom (inflation) and since this war will last 10 years, with 10 to 20% monetary inflation per year, after which the debt will be a rounding error compared to a GDP that is 150% of what it is now.
Repeat this mantra “Control the Oil, Control the Money” 1000 times until what will happen becomes clear.
George, your analysis is right on, if we are to take history as any kind of lesson.
For those who would like to learn more about the cycle George mentions above, see:
Wealth and Democracy: A Political History of the American Rich by Kevin Phillips
http://www.amazon.com/gp/redirect.html?ie=UTF8&location=http%3A%2F%2Fwww.amazon.com%2FWealth-Democracy-Political-History-American%2Fdp%2F0767905342%2Fsr%3D8-1%2Fqid%3D1169637874%3Fie%3DUTF8%26s%3Dbooks&tag=cryptogoncom-20&linkCode=ur2&camp=1789&creative=9325
One wonders, though, what will be left standing after the current iteration of these antics… The mosaic of interdependence is more pronounced than ever, and the fulcrums that make it all possible are so fragile. I don’t know… I just don’t see it going down as it has in the past, but maybe it will.
Maybe this stupid Amero thing will be the answer for keeping the band playing a bit longer.
Just a reminder that “someone” has to borrow all those rampantly-created digi-dollars into existence. Right now, that someone is large central banks in China, Japan, and South Korea (mainly), to the tune of billions a day.
Massive deficit war spending sounds good on paper, but is actually ruinous without a complete victory, with “spoils” and exploitation following to back up all that worthless paper with hard assets and real resources. Otherwise, you end up with Weimar Germany, the ex-Confederacy, or Rome, circa 3rd century A.D., and average people eating cat food because that is all they can afford (wages always lag asset/cost inflation).
It is a mistake to think that you can borrow and spend your way to prosperity with a fiat currency. Ask the Stuart kings of England.
While the forthcoming war will financially and economically stimulate the U.S. in the short run, it will bankrupt it in the long run.
Why?
First, The U. S. can simply print dollars to purchase the goods it needs for the conflict, thus making its form of war finance “cash and carry” all the way through, as existed in WWII before the Lend-Lease program was neccessary to finance the european allies.
However, the massive surfeit of paper and electronic dollars existing after the conflict, held by the companies and countries from which the U. S. purchased its wartime neccessities, will represent claims on tangible U. S. consumption and investment goods, of which don’t currently exist in the U. S. and will not exist in the future, as the exploitation, by international financiers and corporations, of cheap currency-cost and/or labor-glut countries underwritten by essentially costless global communication technologies, has caused the mass offshoring of American production and productivity to China, India, Japan and similar coutries, thus destroying the productive capacity of U. S. industry.
Consequently, at the end of the war, an economy that has reordered itself for war goods production, as the U. S. will at the beginning of the forthcoming war, will have nothing of tangible value to exchange in return for all those dollars except bombs, flak jackets, and MRE’s.
So, all those dollars held by U. S. war financiers, i.e. the bankrolling bankers, corporations, and countries, yet nothing available to purchase with them makes them useless. What happens next; here, I speculate:
1) many dollars will be exchanged for euros, yuan, and yen, as these will be the countries with actual tangible goods and investment opportunities to be exploited via possession of their currencies.
2) the bankrupt U.S. economy will be reordered, with the majority of Latin America and Canada forced to pick up extensive U.S. debt via the Amero, which will replace the dollar, and represent claims on U.S., Latin American, and Canadian consumption and investment goods, much to the chagrin of Canada and the participating countries of Latin America, with the international financier and corporate classes rejoicing, as they move one step closer to their dreams of owning the entirety of the world’s resources, to include YOUR thoughts and behavior.
3) In terms of prices within the U.S., deflation first, then hyperinflation: first, the war debt overhang will cause velociraptor-minded profiteers to make dollars artificially scarce by withholding them, even though they are in reality plentiful, so U. S. prices fall through the floor via massive bankruptcies; this will cause the dollar to artificially become overvalued in terms of exchange rates; the profiteers will then sell the dollars at these high prices, placing the dollar in the banks and central banks of mostly europe and asia; these banks will then try to purchase what little tangible goods and investments the U.S. has left at massively reduced prices with a massive amount of paper and electronic currency, causing, in tandem with the plummeting exchange rate values of the U.S. dollar, a massive hyperinflation; I believe this event will neccessitate the creation of the new North American currency.
Comments??
So, when the dollar becomes artificially overvalued we should exchange all we have for euros…..
None of the fiat currencies are safe. Take the U.S. out of the picture as a dumping ground for EU widgets, Airbus aircraft and BMWs, etc. and you’ll be wiping your ass with euros after you burned your dollars to stay warm.
U.S., CHINA and EUROPE: FINGERS ON TRIGGERS IN MEXICAN STANDOFF
https://cryptogon.com/?p=47
If a “global system” is even around after the smoke clears from this next debacle, it will HAVE to be transformed.
It’s not easy to admit the role the U.S. plays in supporting the rest of the world’s economies through the weird and incredible belief in the myth of the dollar.
The U.S. dollar is the myth upon which the whole damn show depends.
Take the myth away and the entire system comes down.
There is another way this could unfold that is not being considered here. America could very well be defeated or repelled if America does not exercise the nuclear option, which opens up some very interesting possibilities.
I just put together a pretty well researched exploration of this theory titled “IS IRAN A TRAP FOR AMERICA??, Matt Savinar was kind enough to post it on his Lifeaftertheoilcrash.net site. You can find it here:
http://www.lifeaftertheoilcrash.net/BreakingNews.html
I agree there will be a transformation; a re-ordering geared toward freedom, freedom being the ability of the elite owners of the world’s resources to live virtually cost-free at the expense of everyone and everything else.
This, in my opinion is what the entirety of the human population is programmed by nature to seek, this palpable freedom, which is why the demagoguery surrounding the philosophical concept of freedom is so entrancing, and thus the investment banking elites and their think-tank intellectuals use it rhetorically to simultaneously free themselves and enslave everyone else.
A real-world example of the demagoguery/think tank/investment banking nexus:
January 16 – Bloomberg (Joshua Fellman): “Hong Kong was named the world’s freest economy for a 13th year by the Heritage Foundation because of its low taxes, openness to investment and lack of trade tariffs. Singapore was second. Australia, the U.S., New Zealand, the U.K., Ireland, Luxembourg, Switzerland and Canada came next on the list…â€
However, I do think this transformation will have to be carried out via logical, incremental steps, the steps being the destruction of the world’s current reserve currency, the dollar, leading to its value being transfered to:
1) another currency (or currencies) that already exists, i.e. gold, the euro, yuan/renminbi, yen, etc.;
2) OR a currency that will have to be created, i.e. the amero or a new international currency yet to be named,
which the elite class will take possession of before they allow these value transpositions take place.
The most powerful, that is, those who are enslaving and killing us even as I write this post, in my opinion, will choose these steps because:
1) they are relatively cost-free and orderly if you’re an insider who financially positions yourself accordingly while simultaneously convincing the public to ill-position themselves via a deceptive mass media apparatus.
2) even though the U. S. consumption juggernaut will no longer drive the economic production of the entire world, the resources of production in those countries to which the U.S. is currently indebted [and will become even more indebted during the upcoming war] via its ridiculous affinity for seemingly cost-free consumption made possible by the dollar, will still have high economic value after the war, represented by their currencies, although that value will remain deflated for a while until a consumption-based economy can be created in those countries.
There is and will be no corresponding production value in the U.S., with the exception of real estate, which is already owed to the elite-classes, and a war production economy, which has no value at the end of a war.
Moreover, the debt owed by the U.S. to its funding countries will represent additional value, making their currencies even more desirable to the elite classes.
3) The elite would never give up control of currency as a means to own the entire world; even if they trashed all current currencies, they wouldn’t do it before allocating themselves a healthy portion the new international currency or currencies they would have to create; and I guarantee their holdings of the new currency or currencies would be proportional to the amount of value held in the current currency or currencies they now possess and will possess in the future.
I assume that if I were to hold those currencies, I would be in possession of that current and future value.
4) This is very speculative, but I believe you can actually see the elites preparing to take ownership of the resources needed for war right now: U. S. bond prices down, yields up dramatically; commodities still very cheap compared to their prices last May; oil prices very low; and the dollar is tanking against the euro and the pound yet rallying against the yen. All of this price movement is underwritten by a media apparatus spewing the most ridiculous, inane reasons for such price behavior, and people will make, in my opinion , ill investment decisions based on the information they get from this media, as they trust the authority of a cleverly written newspaper/magazine/journal propaganda piece; or a handsome, suited, hypnotically-voiced male or very beautiful female spewing lies from a teleprompter .
Now, imagine what U.S. bonds, commoditites, oil, the dollar, euro, pound, and yen will do when the attack on Iran begins, which, I believe, will likely lead to WWIII. See it now??
And how are the elites able to position these prices so they can buy low and sell high: via the currencies they use to move prices at the margins of the true economic value of these resources.
I’ll end this post with two questions: Why would the money-creating-and-owning/investing class give up this so easily disguised power, and moreover, what power would and could they use to replace it and still maintain control of the world’s resources?
p.s. Look at the dollar gasping for air
(http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_mukherjee&sid=airEHuMlkGao); nothing like a war to resuscitate it!
Dennis,
The U.S. is, right now, trying to take control of Baghdad one street at a time, years after “Mission Accomplished.”
Anyone who thinks the U.S. is going to stick to conventional weapons/tactics in Iran is dreaming, in my opinion.
Thanks for the background info on the arsenal the U.S. will be facing. That’s interesting re: the possible threat to the platforms in the Gulf of Mexico, and refineries in the area. I haven’t heard that one before.
David, I think your speculation regarding the future of currency is spot on and I have seen this for awhile. With the push toward the North American Union isnt very publisised, its a huge movement, and pretty secretive despite most of it being easily available in the public realm. I predict the Amero as the currency established when the smoke from war settles..
Kevin, I agree with your position. Note that the “insurgents” in Iraq arent equipted with anything like Onyx or Sunburn anti ship missiles, S-300PMU-2 anti air missiles, and Tor M-1 missiles which represent some of the finest military hardware on the planet. These systems are agueable better than the systems that America uses.
My only question is will America exercise the nuclear option from the start or wait for a carrier or similiar important target to get vaporised before exercising the option.
Either way I believe its a given..
It seems a radiological/small scale nuclear false flag operation or something of similar magnitude to the false flag op of 9-11 may be used to justify a retaliatory nuclear attack on Iran; this, to me, is the only way the U.S. can shove the sheer lunacy of using nuclear weapons down the throat of the U. S. and world body politic.
Here’s some mass media disseminated intel propaganda to back up this assertion:
http://abcnews.go.com/US/print?id=2813235
And some more:
http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2007/01/24/wiran24.xml
So, just when the U.S. could profit most from an attack on Iran, all the following are happening simultaneously:
a. Iran is apparently obtaining the weapons expertise with which to conduct an underground nuclear test by the end of this year, an assertion I deem beyond absurd.
b. According to DIA agents, Islamic radicals may sneak into the U.S. via student visas to conduct a “terror” operation.
c. Newt Gingrich, as well as host of potential U. S. presidental candidates, are in Israel performing rhetorical fellatio on their masters, hinting at the necessity of dictatorship in the U.S.:
He [Gingrich] added that the United States could “lose two or three cities to nuclear weapons, or more than a million to biological weapons.”
Gingrich added that in such a scenario, “freedom as we know it will disappear, and we will become a much grimmer, much more militarized, dictatorial society.”
http://www.ynetnews.com/Ext/Comp/ArticleLayout/CdaArticlePrintPreview/1,2506,L-3356103,00.html
d. The public is being deprived of its ability to exit the country when chaos and tyranny begins to reign supreme:
The Western Hemisphere Travel Initiative (WHTI) will require all travelers to and from Canada, Mexico, Central and South America, the Caribbean and Bermuda to present a passport or other accepted document that establishes the bearer’s identity and nationality to enter or re-enter the United States….
http://travel.state.gov/travel/cbpmc/cbpmc_2225.html#1
Also:
Taxes and Deficits: Something’s Gotta Give
….
“Continuing on our current fiscal path would gradually erode, if not suddenly damage, our economy, our standard of living, and ultimately even our domestic tranquility and our national security….”
…[This] provokes thoughts of fleeing to countries that balance their budgets and provide universal health care….more people will be leaving the good old U.S.A. instead of entering because of its dire circumstances….
I seriously wonder what will happen to the U.S. in the future. Meanwhile, I’ll hold onto my E.U. passport.
http://www.cfo.com/blogs/index.cfm/8582587?&x=1
e. The dollar is being artificially propped up by the announcement of U.S. Strategic Petroleum Reserve doubling, even as it crumbles before our eyes:
http://news.yahoo.com/s/nm/20070122/us_nm/usa_pennies_shortage_dc_1
http://www.bloomberg.com/apps/news?pid=20601170&sid=ajeGEZzXBwfY&refer=home
f. The savage, rabid beasts inhabiting the White House are under fire on all fronts; what will these animals do when completely cornered and fearing for their lives?
http://www.antiwar.com/justin/?articleid=10384
How long before all this culminates in an attack on Iran? I say it will happen before July 1st, jumping off as a conventional war, with a false flag CBRNE attack on the U. S. to be blamed on Iran occurring after the war begins, to be followed by a retaliatory U.S. nuclear attack.
WWII:
Germany was too powerful and threatening to UK (current world power). They fought Germany and was about to lose, so US stepped in to save them. US financed them, UK essentially bankrupt and gave up world power role to US.
WWIII: Iran was too powerful and threatening to US (current world power). They fought Iran and was about to lose, so China stepped in to save them. China financed them, US essentially bankrupt and gave up world power role to China.
Then…
China uses enormous USD reserves to buy the last remaining assets of value in the US, our military industrial assets that blossomed in WWIII.
Financial investments in China are now protected by massive Chinese military.
Anyone want to bet huge sums of money against my assertion that the war alliances will form along these lines:
http://en.wikipedia.org/wiki/Image:Current_account_balance_world.PNG
How ironic that wikipedia decided to use the colors red and blue!!
[…] reader David submitted a comment that contained an interesting link to a map that depicts each country of the world in terms of […]